Several States File Lawsuit Over DOL Overtime Rules

Several states, including Nevada, are joining forces to challenge the U.S. Department of Labor’s (DOL) new overtime rules.

Attorney Generals in Nevada and Texas filed a suit in Texas federal court, contending the overtime regulations are “illegal” because they are set to increase the threshold for eligibility automatically every three years without valid congressional authorization.

The complaint further charges that the new rules, which are scheduled to take effect on December 1, will vastly increase labor costs for many states, private businesses and local governments which will likely result in job cuts and layoffs.

The new rules would raise the threshold of eligibility for overtime from $455 a week to $913 a week, or $47,476 annually. Which is an estimated 4.2 more workers across the U.S. that would become eligible for overtime pay.

Moreover, the rules would attach an automatic update to the salary threshold every three years – which is also being challenged in the suit – because it allows changes but bypasses the rule-making process, without considering current economic conditions.

The Department of Labor has not yet released any comments or statements regarding the suit.